Innovation in Competitive Electricity Markets

On February 24, KEMA – a leading global energy consulting, testing and certification firm – released a white paper commissioned by the COMPETE Coalition exploring the link between competitive electricity markets and the creation and acceleration of innovation in electricity service offerings and practices, such as demand response and energy storage technologies.

According to KEMA’s research, the electricity industry has witnessed competition-driven innovation at the wholesale and retail levels over the last decade. In its white paper, KEMA explored the relationship between competition and innovation in the electricity industry using three case studies. Based on the synthesis of these case studies, this research confirms that competitive markets have contributed to innovation in the electricity industry. It finds that competitive markets support innovation by rewarding new ways of delivering power that improve upon existing approaches and by encouraging participants to develop services that quickly adapt to meet market needs.

“These findings confirm that competitive markets encourage innovation along with significant economic and environmental benefits – new entry by innovative resources, energy efficiency and conservation including demand resources, competitive prices and clean energy development,” said William Massey of COMPETE. “Competitive markets provide a level playing field and fair rules that welcome innovation. And what we are seeing is only the beginning of the innovative resources that competitive markets will deliver into the future.”

To view the white paper in full, download the attachment below. Also available for download is the presentation delivered by Gene Hunt, Beacon Power Corporation.